International General Insurance (IGI) is revamping its risk management and actuarial systems with two new platforms that use advanced computing and automation technology to save costs and time.
For risk analysis, IGI is using RPC's Tyche platform, which will be fully implemented by the end of this year. Tyche is a low-cost modelling platform with the ability to model risk 100 times faster than the firm's legacy systems.
IGI says Tyche can test what-if scenarios, run different reinsurance structures and submit its expert judgements to sensitivity tests at one million simulations. The platform also allows models to be audited more easily, while the process to debug models is streamlined to reduce the complexity of correcting large-scale calculations.
For the actuarial processes, IGI is using Dynamo Analytics' Psicle. According to the firm, Psicle features intelligent optimisation and is able to industrialise business-critical financial models.
Psicle has been used to automate IGI's Solvency II work, such as calculating technical provisions, the standard formula and performing regulatory reporting.
IGI's next step will be to extend Psicle to cover IFRS reserving, and to integrate it fully with Tyche. The latter step will allow IGI to assess the impact of various strategies on its balance sheets, income statements and capital adequacy ratios.
IGI added the platform has the potential to support IFRS 17 and the analytics that would be required were the company to move into Lloyd's.
"Our mission is to bring our risk and actuarial functions back to the fore – using technology coupled with internal talent, in order to deliver real and sustainable value," said Simon Spurr, group head of risk and capital management at IGI.
"A process that took days to complete now takes a matter of minutes," said Sunnie Luthra, IGI's risk and capital actuary. "This has freed up our skilled actuaries to perform deep analytics for all the individual portfolios."
IGI is a specialist commercial re/insurer registered in Dubai with its three main underwriting businesses based in Jordan, the UK and Bermuda.